Taxable strategies
Our goal with this strategy is to outperform the 90-Day US Treasury Bill by up to 50 basis points on a net-of-fee basis over a 5-year market cycle.
Cash Plus taxable strategy:
- Provides a high degree of liquidity with an asset allocation heavily weighted in short-term, investment-grade fixed income securities
- Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach
Our goal with this strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relevant benchmark.
Low duration fixed income taxable strategy:
- Provides a high degree of liquidity with an asset allocation heavily weighted in high quality fixed income securities.
- Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach
Our goal with the intermediate fixed income strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relevant benchmark.
Intermediate fixed income taxable strategy:
- Provides high degree of liquidity with an asset allocation heavily weighted in high quality fixed income securities
- Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach
Our goal with the intermediate government strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relevant benchmark.
Intermediate government taxable strategy:
- Is designed for clients whose policies limit them to US Government securities
Provides a high degree of liquidity with an asset allocation heavily weighted in high quality securities. - Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.
Our goal with the core fixed income strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relative benchmark.
Core fixed income taxable strategy:
- Provides high degree of liquidity with an asset allocation heavily weighted in high quality fixed income securities.
- Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.
Our goal with the core government strategy is to provide a stable income stream, principal protection, and to outperform market-weighted inflation on a risk-adjusted total return basis vs. the relevant benchmark.
Core government taxable strategy:
- Is designed for clients whose policies limit them to US Government securities
Provides a high degree of liquidity with an asset allocation weighted in high quality securities. - Drives asset allocation with a two-tier approach: a “top-down” view of global markets followed by SAC’s qualitative and quantitative “bottom-up” approach.
Investment Philosophy
Our top-down duration management is maintained within a band relative to the benchmark. Decision-making points that determine band optimization are based on
- Key macroeconomic data
- Socio-political issues
- Fundamental research reviewing credit rating sector reports
- Supply and demand analysis
These factors are combined with your guidelines, diversification requirements, and portfolio benchmarks.
Our senior portfolio managers actively manage bottom-up yield curve exposure using quantitative swap models based on the criteria below in the context of our top-down view.
- Historical yield spread relations
- Relative value
- Credit worthiness
- Potential price and income appreciation of a particular sector and index
Risk-Management Strategy
Using a forward-looking approach, we identify, analyze, quantify, and prioritize the types of risk affecting portfolio investments across four dimensions: bottom-up, core, tail and liquidity risk.
To do this, we:
- Diversify across multiple risk factors. We identify the acceptable level of risk you’re willing to undertake to achieve a certain level of return and target return contribution.
- Focus on risk factors, not just asset classes. After identifying where we are within the risk cycle, seek asset classes that provide more upside or help to avoid or control downside volatility within the cycle.
- Analyze correlations and active risk for impact of market movements on portfolio risk targets.
- Use tactical indicators to capture sentiment and turning points.
- Add uncorrelated or negatively correlated assets as diversifiers during downturns, i.e., TIPS, cash, gold, and other commodities.
Testimonials
